Appeals Court Upholds SFL's ~NOK 525M Award in Seadrill Rig Dispute
SFL has more than doubled off its 52-week low of $6.73.
Summary
The Borgarting Court of Appeal unanimously affirmed the February 2025 Oslo District Court ruling that Seadrill breached its contract on the Hercules rig redelivery, ordering payment of approximately NOK 525 million ($55 million) to SFL's rig-owning subsidiary on October 13, 2026, including compensation, late interest, and full legal costs for both court proceedings. The total amount payable increased due to accrued interest since the district court ruling. The drilling rig Hercules was redelivered to SFL in December 2022. This is a material cash inflow for a company with a $2 billion market cap, and it removes a layer of legal uncertainty. Either party may still seek leave to appeal to the Supreme Court within one month, but such leave requires approval from the Appeals Selection Committee and is granted only in limited circumstances, so the timing of actual collection remains uncertain. The award follows SFL's recent fleet moves—charter extensions with Hapag-Lloyd and a $216 million ammonia carrier order—and adds a non-operating cash boost to the balance sheet.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — Borgarting Court of Appeal unanimously ordered Seadrill to pay SFL's subsidiary approximately NOK 525 million ($55 million) on October 13, 2026, for breaching the Hercules redelivery contract.
- Judgment Details — The Court of Appeal's judgment was unanimous. The case was between SFL's rig-owning subsidiary and certain Seadrill subsidiaries. SFL was awarded full legal costs for proceedings before both the Oslo District Court and Court of Appeal.
- Rig Redelivery — The drilling rig Hercules was redelivered to SFL in December 2022.
- Interest and Timing — The total amount payable increased due to accrued interest since the Oslo District Court ruling in February 2025.
- Appeal Process — Supreme Court appeal requires leave from Appeals Selection Committee, granted only in limited circumstances.
All 7 details
- The Court of Appeal's judgment was unanimous.
- The legal case was between SFL’s rig-owning subsidiary and certain Seadrill subsidiaries.
- The drilling rig Hercules was redelivered to SFL in December 2022.
- The total amount payable increased due to accrued interest since the Oslo District Court ruling.
- SFL was awarded full legal costs for proceedings before both the Oslo District Court and Court of Appeal.
- Supreme Court appeal requires leave from Appeals Selection Committee, granted only in limited circumstances.
- The Oslo District Court’s ruling was in February 2025.
At the time of this announcement, SFL was trading at $13.58 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2B. The 52-week trading range was $6.73 to $13.98. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.